A recent report from Norwich Union Equity Release has found that middle-aged female divorcees are facing a retirement crisis. According to their report, only 4% of divorced women over 50 have received any of their former husbands pension pot on divorce or separation, despite recent legislation, which gives women a better deal on pension splitting. Many women rely solely on a share of their husbands pension to provide for them in retirement, with 45% of women over 50 surveyed expecting to use their husband's pension as their main source of income. Over three quarters of the women surveyed say that they are not in a position to save money at the moment for a pension, yet most of these people were asset rich, with almost half owning their own home outright. Around 30% of those polled said that they were relying on their property as a means of generating income in retirement.
Our view
Many women get to keep the matiral home and forget how valuable a pension is. Their legal advisers should consider both and not place as mch reliance on the home asset. Visit our website Divorce and pensions.com.